Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will normally be granted for a set period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Leytonstone. Inevitably, the term of lease left shortens over time. This may pass by relatively unnoticed when the flat or house has to be disposed of or refinanced. The fewer the years remaining the lower the value of the property and the more it will cost to extend the lease. Qualifying leaseholders in Leytonstone have the legal entitlement to extend the lease for a further ninety years under the 1993 Leasehold Reform Act. Please give careful attention before delaying your Leytonstone lease extension. Holding off the cost now simply increases the price you will eventually incur for a lease extension
Leasehold premises in Leytonstone with more than 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
Lease extensions in Leytonstone can be a difficult process. We recommend you procure professional help from a conveyancing solicitor and valuer with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Leytonstone lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Oscar owned a 2 bedroom apartment in Leytonstone being marketed with a lease of a little over 59 years unexpired. Oscar informally approached his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £200 per annum. Ordinarily, ground rent would not be due on a lease extension were Oscar to exercise his statutory right. Oscar obtained expert advice and secured an acceptable deal without resorting to tribunal and ending up with a market value flat.
Dr Ibrahim Martinez owned a purpose-built apartment in Leytonstone in August 2005. The dilemma was if we could approximate the premium would be to prolong the lease by ninety years. Comparable residencies in Leytonstone with an extended lease were worth £198,800. The average amount of ground rent was £55 billed yearly. The lease terminated on 18 August 2079. Considering the 55 years unexpired we estimated the premium to the freeholder to extend the lease to be within £33,300 and £38,400 plus expenses.
An example of a Freehold Enfranchisement matter before the tribunal for a Leytonstone flat is 36 New Wanstead in August 2010. The Tribunal arrived at a valuation of the premium for the freehold of £22,359. This case related to 2 flats. The unexpired term as at the valuation date was 73.92 years.